BSP Gov. Amando M. Tetangco, Jr. (MB File Photo)
The Bangko Sentral ng Pilipinas’ (BSP) Monetary Board kept benchmark rates unchanged for nine straight meetings, with BSP finding inflation still benign and economic growth momentum on a path that is sustainable and supportive of monetary policy settings.
“(BSP) observed that domestic demand conditions have stayed firm (and) domestic liquidity remains adequate,” said BSP Governor Amando M. Tetangco, Jr.
The “uneven” global growth and challenging external environment has also convinced the Monetary Board to maintain a steady policy setting.
For this year, the BSP lowered its inflation forecast to 1.4 percent from the previous 1.6 percent and for 2016, it is now 2.3 percent from 2.6 percent estimate earlier.
The central bank also lowered its 2017 forecast to 2.9 percent from three percent. For 2015-2017, the BSP’s inflation target range is 2-4 percent.